Judgement and Decision

Question 1

bounded rationality

Answer 1

• human beings try to make rational decisions, but our cognitive limitations prevent us from being fully rational
• limitations on intelligence and perception constrain the ability of even bright decisionmakers to make the best choice.

Question 2

Tversky and Kahneman research

Answer 2

• behavioral decision making

- critical info about specific systems and predictable biases, and mistakes that influences judgements

Question 3

heuristics

Answer 3

cognitive thinking strategy that simplifies decision making by using mental short cuts

Question 4

framing

Answer 4

bias to be systematically affected by the way in which information is presented, while holding the info constant

Question 5

Stanovich and Wests bias process was

Answer 5

• System I-processing our intuitive system which is typically fast, automatic, effortless, implicit, and emotional
• used in most decision making
• System II- decision making that is slower, conscious, effortful, and logical

Question 6

biases

Answer 6

systematic and predictable mistakes that influence judgment of even very talented human beings